Industries with the Highest Profit Margin in Australia in 2021

1. Industry Superannuation Funds in Australia

Profit Margin 2021: 91.0%

Industry super funds are not-for-profit superannuation funds that operate for the benefit of their members. Revenue for the Industry Superannuation Funds industry has risen from a low base over the past five years. Several events weighed on the industry at the start of the period, including the UK's EU referendum and the European sovereign debt crisis, which caused significant fluctuations in industry revenue. The industry's investment performance fluctuated but improved overall throughout much of the period prior to the COVID-19 outbreak, which led to an investment loss for industry super funds. Overall, industry revenue is expected to rise at an... Learn More

2. Superannuation Funds in Australia

Profit Margin 2021: 83.5%

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. From 1 July 2021, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.0% of an employee's income to the employee's choice of superannuation fund. This system has supported the Superannuation Funds industry over the past five years, which is expected to be one of the largest pension systems in the world.

Industry revenue is expected to fall at an annualised 8.1% over the five years through 2021-22, to $167.4 billion. This... Learn More

3. Retail Superannuation Funds in Australia

Profit Margin 2021: 83.2%

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 29.5% over the five years through 2020-21, to $44.4 billion. This trend includes significant growth in the current year as the industry rebounds from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and these are expected to grow at an... Learn More

4. Iron Ore Mining in Australia

Profit Margin 2021: 49.3%

The Iron Ore Mining industry has benefited from major increases in iron ore prices, and small increases in production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 15.8% over the five years through 2020-21, to $128.7 billion. This trend includes an anticipated 13.5% rise in the current year, due to higher iron ore prices and rising demand from China, despite some uncertainty during the COVID-19 pandemic. Over the past decade, strong economic growth in China has driven developments in Australian iron ore mining to meet Chinese demand for greater steel... Learn More

5. Toll Road Operators in Australia

Profit Margin 2021: 41.7%

Firms in the Toll Road Operators industry charge motorists for the right to access high-quality roads that reduce travel times and revenue from individual toll roads is typically stable. Individual assets grow in popularity with motorists over their lifetime, as congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

6. Electricity Distribution in Australia

Profit Margin 2021: 37.2%

Operators in the Electricity Distribution industry use networks to transport electricity from high-voltage transmission networks to households and businesses. These distribution networks are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Network operators have extended their networks substantially over the past decade, to account for potential rises in peak electricity demand. Regulators allow industry operators to generate a return on their capital so they can pay debt and equity holders. Historically, the amount of revenue that regulators have permitted the industry to capture from users has been proportional to... Learn More

7. Online Advertising in Australia

Profit Margin 2021: 35.0%

The Online Advertising industry has grown over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is moderately concentrated, with the top four players accounting for over half the industry. Google is the dominant player in the industry, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts significant advertising revenue from its online video service, YouTube. The outbreak of COVID-19 in early 2020... Learn More

8. Organic Livestock and Poultry Farming in Australia

Profit Margin 2021: 32.4%

Revenue for the Organic Livestock and Poultry Farming industry has grown strongly over the past five years. The acceptance of organic products as a healthy food option has supported revenue growth over the period. In particular, organic meat has surged in popularity, contributing to the industry's rapid expansion. However, drought conditions have severely affected supply, particularly over the two years through 2018-19, constraining growth. As a result, industry revenue is expected to rise at an annualised 5.1% over the five years through 2020-21, to $699.1 million. Mostly positive demand conditions have supported industry profitability. However, rising costs and an influx... Learn More

9. Dental Services in Australia

Profit Margin 2021: 31.9%

Australia's ageing and growing population has supported the Dental Services industry over the past five years. In contrast with other health services, the industry is predominantly privately funded. While most individuals pay for dental check-ups and procedures with their own income, some use private health insurance extras cover to subsidise the cost. Therefore, patients with private health cover tend to be more willing to visit their dentist regularly and undergo expensive procedures. In 2018-19, private health insurance companies paid $2.8 billion in dental benefits for 42.9 million out-of-hospital dental services, although numbers were lower at $2.6 billion and 39.9 million... Learn More

10. Online Car Classifieds in Australia

Profit Margin 2021: 31.8%

The Online Car Classifieds industry's growth has slowed over the past five years. New passenger vehicle sales have declined over the period as deteriorating economic conditions negatively affected credit availability, constraining industry demand. In particular, the COVID-19 pandemic drove a significant fall in industry revenue in 2019-20 as restrictions on movement and gatherings reduced demand for motor vehicles and accompanying classified ads. Nevertheless, online car classifieds operators have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Industry revenue is expected to increase at an annualised 0.4% over... Learn More